Training Entrepreneurs in Connecting Generations and Supporting Successful Business Succession Planning for micro-SMEs

1. Date: 23/ 06/2015 Page 1
Training Entrepreneurs in Connecting Generations and
Supporting Successful Business Succession Planning for
micro-SMEs
InTo Generation
Comparative Analysis
Project Number: 2014-1-TR01-KA204-013399
For further information related to the INTO-GENERATION project please visit:
Project’s website (http://www.into-generation.eu);
Facebook page (facebook.com/IntoGeneration);
Twitter page (twitter.com/IntoGeneration).
This project has been partially funded under the Erasmus+ programme. This publication reflects the views only of the author(s), and the
Commission cannot be held responsible for any use which may be made of the information contained therein
Intellectual output No. 1
IO Title Survey and Research
Status Completed
Project start date 01/09/2014
Project duration 24 months
Author
Konstantinos Poulopoulos
Panteleimon Kanellopoulos
Despina Kanellopoulou

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Introduction
The conducted survey of InTo Generation project was addressed to family SME owners and their successors. The
collected data were subjected to a quantitative and qualitative analysis in order to support the creation of relevant
educational material (curriculum).
The survey period was from February 2015 until May 2015 and it was conducted in Bulgaria, Greece, Germany, Spain
and Turkey. The sample of the survey was consisted of a total of 605 participants from all partners’ countries. In
particular in Bulgaria there were 50 participants in the survey, in Greece 52 participants, in Germany 62 participants,
in Spain 54 participants and in Turkey 387 participants.
The aim of the survey was to identify the main issues that Family SMEs’ currently confront in partners’ countries,
their lack of knowledge on management issues and the ability to adopt new practices in the field of business. The
acquired data have provided to the consortium of InTo Generation project detailed and valuable knowledge on the
topic.
The design and compilation of the questionnaire regards to the research were made in English. Each project partner
individually had undertaken to translate the questionnaire in their language.
The purpose of translating the survey to all partners’ languages was to provide unrestricted access to participants
and stakeholders. By this method, the project provided ease of participation to stakeholders without language
restrictions.
Research Process
For conducting the research, the online service “Survey Monkey” was used. Via the specific service the participants
were able to respond online. Simultaneously, it had provided to the consortium easier promotion of the
questionnaire through internet and social media.
In addition, “Survey Monkey” service had provided direct data collection, automatic calculation, statistical results
and result presentation (via charts). Furthermore, direct monitoring of partners’ progress activities was achieved and
also feedback was provided concerning each partner. Finally, it assisted the consortium for taking corrective actions
in order to manage defaults to the target of minimum participation (50 completed questionnaires) for each partner.
The usage of the online service “Survey Monkey” assisted the consortium in saving valuable labor hours that were
used for more immediate and effective promotion of the survey and generally the project to target groups
The consortium had created a separate online questionnaire for each language (version) in order to receive the
necessary data concerning the evolution of the survey in each partner’s country. This method provided effective
control of partners and timely achievement of project’s objective.
Data collection methods
Alongside the online questionnaire, project partners conducted the data collection and survey through other
practices. Overall data collection methods for the survey were:
• Face to face interviews with Family SMEs owners and successors
• On line Questionnaire – “Survey Monkey” online service

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• Telephone Interviews with Family SMEs owners and successors
• Fax (sending to Family SMEs owners and successors the questionnaire and receiving it back completed)
• E-mails
After collecting all the data with the above practices project partners undertook for their country to enter survey
participants’ responds into the online service “Survey Monkey” in separate on line questionnaire. The aim of this
practice was to aggregate the respondents’ data on the basis that all partners could briefly present the results of the
survey and also to assist the consortium in effective control of each partners regards the fulfillment of objectives and
their obligations
Finally, the ways in which partners informed and promoted the survey to the general public and to target groups
were:
• E-mails
• Telephone calls
• Fax
• Social Media
• Social Media ads – Facebook ads for reaching target groups
• Newsletters

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A. Personal Information of the respondent
Q1. Gender
In all partners’ countries the majority of the participants are males (75%) with females occupying just 25%. According
to the report “Statistical Data on Women Entrepreneurs in Europe”, that was conducted by the European
Commission and released in September of 2014; women represent 29% of entrepreneurs in Europe.
Q2. Age
Most of the participants (44%) are between the age group of 31-45 y.o. with second most popular age group the one
between 46-65 y.o. (33%). In the current question the majority of countries have most popular reply 31-45 y.o.
except Bulgaria that answered 46-65 y.o. In particular, concerning Bulgaria the most frequent answer among the
respondents was 46-65 y.o. because the majority of the micro-SMEs were established after 1990 at beginning of the
Democracy in that country.

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Q3. Education
In the current question the majority of the respondents (66%) have replied that are University graduates following
6% of the option “Other” that obtains postgraduates and Ph.D. holders. Concluding, Higher and Highest Educational
Background among the respondents was 72%. Secondary education replied 22% of the total respondents.
In Bulgaria, Greece, Spain and Turkey have most popular reply “University” except Germany that have as most
popular answer the Secondary Education.
B. About your company
Q4. Company is based in:
Table of Companies Based in Partner Countries
Countries/Countries Greece Bulgaria Spain Turkey Germany
Greece 50
Bulgaria 47
Spain 50
Turkey 1 281
Germany 1 1 59
Generally, the SMEs that participated in the survey of InTo Generation project were located respectively in partners’
countries. Some exemptions were in Turkish version of the Questionnaire that one SME was located in Bulgaria and
in the German that one SME was located in Greece and one in Spain.
Concerning Turkey, there was a large number of participation in the survey due the fact that there are two partners
in Turkey. Particularly, the Ankara Chamber of Commerce which is involved with SMEs and is collaborating with
other Chambers across Turkey had the ability to reach more respondents.

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- Location:
Most of the SMEs (74%) of all participating countries are located in Urban areas.
Q5. Company is family owned:
The majority of businesses (74%) in all participating countries are family owned.

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Q6. Number of employees in your company:
The most popular answer in all partners’ countries was “10-49 employees” (32%), 28% replied “1-4 employees” and
27% “self employed”.
In Greece, Bulgaria and Germany the most frequent answer was “5-9 employees”, while in Turkey “10-49
employees” and in Spain “1-4 employees”.
Q7. Yearly turnover:
In all counties, except Turkey, the majority of SMEs have a yearly turnover from 0.01€ to 1 million €.For Turkey the
majority of SMEs replied from 1million Turkish Lira (TRY) to 6 million Turkish Lira (TRY).

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Q8. Number of family members / relatives who are employed in your business:
All participating countries replied that companies employ at least 1-3 family members while a 31% answered that
employ none.
Q9. How many years has your company been in operation?
In Germany and Spain the most popular answer was 1-4 years while in Turkey it was more than 20 years, in Bulgaria
from 10-20 and in Greece from 4-10 years of operation.
30% of Businesses operate for more than 20 years, while 22% run at least the last 1-4 years, 21% from 4-10 and 1-4
years respectively.

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Q10. How was your company launched?
In all countries, the most popular answer of the respondents was “I founded it” (55%).
Q11. In which sector(s) is your company active?
Concerning the productive sectors 53% of SMEs are active in the Tertiary sector, Secondary follows with 38% and
Primary with 9%. Summarizing, in Bulgaria, Greece, Germany and Spain respondents mostly replied that their SME is
active Tertiary sector while in Turkey the most popular answer is the Secondary. These findings provide to the
consortium useful information about the structure of the economies in partners’ countries.

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- If yes for primary sector, in which field?
In Primary sector 56% of Businesses belong to the “Agriculture/Livestock/Fishery” sector while 44% to
“Quarries/Logging/Mining”.
- If yes for secondary sector, in which field?
In Secondary sector 38% of SMEs are active in “Building/Construction” sector while 32% to “Crafts” and 30% to
“Food & Beverages”.

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- If yes for tertiary sector, in which field?
In Tertiary sector most businesses (23%) are of various backgrounds and nature while 20% are active in “Retail
Trade”, 18% in “Technical / Consulting Services”, 15% in “Tourism” and 14% in “Restaurants / Café / Bars” sector.
Q12. Have you attended any educational training program for further expanding your
knowledge / skills on managerial / administrative / technical level?
54% of the respondents replied positively on previous Educational Training Programs while 46% answered “No”.
In the current question Greece, Germany and Spain have most frequent answer “No” while Bulgaria and Turkey
answered “Yes”.

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Q13. If yes, where did you attend this?
49% of Participants attended an educational Training Program in a University, 28% in a VET center and finally 23% in
a “Technical/Professional/ Trade school”. In the current question Greece, Turkey and Bulgaria have most frequent
answer “University” while Germany has “VET center” and Spain “Technical / Professional / Trade school”.
Q14. What topics were addressed in the training?
- Technical Skills
Written and Oral communication (13%) together with the Ability to organize (13%) were the most popular categories
of Technical skills followed by “Interpersonal Skills” (12%), “Listening” (10%), “Technology” (10%) and “Technical
Business Management” (9%).

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TECHNICAL SKILLS
Bulgaria Greece Germany Spain Turkey
Interpersonal skills Interpersonal skills Being a Team Player Monitoring
Environment
Network Building
Ability to organize Ability to organize Coaching Network Building Monitoring
Environment
Management Style Management Style Management Style Technology Coaching
Summarizing in the current question the most frequent answers among the respondents in partners’ countries were
the following:
- Interpersonal Skills
- Ability to organize
- Management style
- Coaching
- Network building
- Monitoring Environment
- Business Management Skills
Management composes the most popular answer (12%) on “Business Management Skills”, while “Planning and Goal
setting” and “Decision Making” follow both with 11%. “Marketing”, “Human relations” and “Finance” follow with
10% each.

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BUSINESS MANAGEMENT SKILLS
Bulgaria Greece Germany Spain Turkey
Management Venture Launch Venture Launch Managing Growth Venture Launch
Control Managing Growth Managing Growth Finance Negotiation
Finance Control Control Control Accounting
Summarizing in the current question the most frequent answers among the respondents in partners’ countries were
the following:
- Control
- Finance
- Managing Growth
- Venture Launch
- Personal Entrepreneurial Skills
Most popular answers in Personal Entrepreneurial Skills, both with 19% were these of “Inner Control/Discipline”
and “Innovative” while “Risk” taking holds 15% and change oriented 13%.

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PERSONAL ENTREPRENEURIAL SKILLS
Bulgaria Greece Germany Spain Turkey
Innovation Change Oriented Persistency Visionary Leader Persistent
Change Oriented Risk Taking Ability to Manage
Change
Risk Taking Change Oriented
Risk Taking Ability to Manage
Change
Visionary Leader Ability to Manage
Change
Visionary Leader
Summarizing in the current question the most frequent answers among the respondents in partners’ countries were
the following:
- Change Oriented
- Risk Taking
- Visionary Leader
- Ability to manage change

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Q15. In your point of view which is the major challenge(s) that your company is currently
facing?
- Internal-
Among partners’ countries the most popular responses were:
- Need for financing
- Sales
- Planning for the future of the business
- Having a website
- Marketing
- Need for qualified stuff
- Need for training on new technologies
- Need for innovation and technology

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- External
The most serious External challenges that businesses face are “Price completion” (30%), the “General economic
environment” (29%) and “State regulations” (30%).
Summarizing in the current question the most frequent answers among the respondents in partners’ countries were
the following:
- Price Competition
- General Economic Environment

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C. New generation in your company
Q16. Do you already plan the succession within your company?
63% of the respondents have not planned the Succession of their SME yet. In Greece, Spain, Germany and Turkey
the respondents replied “No” as the most frequent answer, except Bulgaria that stated “Yes”.
Concluding there is a need of equipping young successors with necessarily knowledge, skills and competence in
terms of transfer of the management and the business to the new generation.
Q17. If yes, how does the next generation prepare themselves for the family business?
51% of the participants replied that “Working in the family business a few hours per day will prepare them for the
family business”. In Greece, Bulgaria and Germany respondents’ most popular answer was “Working in the family

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business a few hours per day will prepare them for the family business”, while in Turkey and Spain was Expanding
their knowledge / skills / techniques through educational courses (Technical schools, VET training).
Q18. In case you plan the succession, how do you feel about the preparation of the next
generation for taking over the family business?
Respondents answered that “Feel confident and trust of the next generation” (35%) and that “Find that the added-
value of next generation will be very important for the business” with 35% as well.
In Greece, Germany and Turkey respondents’ most popular answer was “Find that the added-value of next
generation will be very important for the business”, in Bulgaria “Feel confident and trust of the next generation”,
while in Spain respondents provided the same percentage (33.33%) to the three options of the current question.
Concluding, the majority of the respondents in all partners countries showed by their responses high level of trust
and confidence to the new generation (successors) as well as certainty that successors will provide value adding in
family SME. For realizing although the trust and confidence of family SMEs owners about the successors there should
be an ongoing training addressed to the successors in order to sustain and develop the family SME. These findings
also reveal the need of enhancing the cognitive level of successors in managerial/administrative matters in the scope
of family SME.

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Q19. In case you did the succession, how confident were and are you in taking over the family
business?
51% of the participants answered that “Feel confident and trust I will succeed” while 33% replied “Feel that I need
to learn more but I am determined and I will keep on working and learning even from my own mistakes” and 16%
“I think the responsibilities and the demands of the work are too much for me. I definitely need more guidance
and support”.
Summarizing in the current question the most frequent answers among the respondents in Greece, Bulgaria and
Turkey was “Feel confident and trust I will succeed” when in Germany and Spain was Feel that I need to learn more
but I am determined and I will keep on working and learning even from my own mistakes”.
Q20. How do / did you organize the succession of your family business?
Most popular answers concerning the organization of the succession of family business were “Transfer both
management and ownership to the next generation” (53%) and “Transfer only management to the next

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generation” (26%). Summarizing for all partners countries the most popular answer was “Transfer both
management and ownership to the next generation”.
Concluding, most of the successors will take over the family SME in management and ownership highlighting the
need of developing skills and acquiring the necessarily knowledge for successful management of family SME.
Q21. Are you willing, in collaboration with your children/relatives, to modify practices and
methods of production/management that you were using in the past?
The majority of the respondents in all partner counties answered that “Yes, I believe that new ideas will help the
business to improve and I support them”.
Q22. When you retire, what are you planning to do with your company?
Most of the respondents (71%) replied that they will assign their businesses to their children/relatives, 16% that they
will sell it and 13% that they will cease their operation.

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In Greece, Bulgaria, Turkey and Spain have as the most popular response “I will assign it to my children/relatives”
while in Germany “I will sell it”.
Q23. If you plan to transfer your company to the next generation (your children / relatives),
would you like to participate in pilot training that the InTo Generation project will organize to
assist this transfer from one generation to the other?
52% of the respondents replied “Yes” on participating to the pilot training of InTo Generation project while 48%
answered “No”.
Concluding, most of the respondents among partners countries replied positively for participating. The negative
answers appeared due to the lack of time for training that usually is created by the workload of SMEs, hesitation and
reluctance for new methods due to prejudice and cultural barriers.
Also about prejudice and cultural barriers concerning Greece, the respondents consider that successors who
attended the University and are planning to take over the family SME do not need furthermore training in
developing their skills and/or acquiring more knowledge on the field of businesses (prejudice and cultural barriers).

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Conclusions
In a glance of the current survey there were the following findings:
The respondents had previously attended an educational training program in University for expanding their
knowledge and skills on managerial, administrative and/or technical level. The topics that were mostly covered were
in Technical Skills (interpersonal skills, ability to organize, management style, coaching, network building and
monitoring environment), in Business Management Skills (control, finance, managing growth and venture launch)
and in Personal Entrepreneurial Skills (change oriented, risk taking, visionary leader and ability to manage change).
The respondents believe that the major challenges their family SME is facing in Internal matters were the need for
financing, sales, planning for the future of the business, having a website, marketing, the need for qualified stuff, the
need for training on new technologies and the need for innovation and technology. Concerning the external matters,
the respondents believe that the major challenges were price competition and the general economic environment.
More than half of the families SMEs (63%) have not planned the succession within the company. The method that
family SMEs use for preparing the successors for taking over the family business is working few hours per day in the
company. In the majority of the responses, the owners of family SMEs believe that their successors will add
noticeable value in the family business and they feel confident and trust for them. Additionally, successors feel
confident and trust that they will manage to succeed in taking over the family business.
The majority of family SME owners plan when retiring to assign the business to the next generation by transferring
both management and ownership and they are willing to participate in the pilot training of InTo Generation project.